MBAV: Budget positive for builders

20 May 2010


Victoria's peak building industry body has welcomed the State Government's recent Budget announcements to expand the Victorian First Home Bonus Scheme and cut Payroll Tax and WorkCover Premiums as a boon to the building industry.

The Master Builders Association Victoria (MBAV) said budget initiatives announced earlier this month would provide relief for Victorian families aspiring to new home ownership.

"The $2,000 boost to the First Home Bonus and the Regional First Home Bonus will improve housing affordability across Victoria," said Master Builders executive director, Brian Welch.

"For a median priced home in Melbourne, future mortgage payments will be reduced by $8 per fortnight, $210 per year and $6,300 over the life of the average home loan. "For a median priced home in Geelong, future mortgage payments will be reduced by $16 per fortnight, $420 per year and $12,600 over the life of the average home loan."

Master Builders welcomed the $2,000 reduction in the First Home Bonus for established homes. Redirecting funding support to those purchasing new homes would stimulate housing supply and provide a "positive flow-on effect for builders and their associated industries" he added.

"The $18.7 million investment in Central Activity Districts (CADs) and in-fill development programs will help ease planning delays by depoliticising planning decisions and fast tracking community investment. The $193 million cut to Payroll tax, down to 4.9 per cent, will return ‘bracket-creep' to builders seeking to expand their workforce. The $28 million Land Tax Exemption during the construction phase of retirement villages will help bring forward much needed development and improve project viability.

Meanwhile, the $5 million Building a Green Future fund would allow builders and trades people to improve their sustainability credentials through subsidised green skills training. Funding for this new initiative featured in Master Builders 2010-11 Pre-Budget Submission. "Victorian builders will also benefit from the modest reduction in WorkCover Premiums by 3.5 per cent and continued investment in apprentice training," Welch said.

Master Builders also welcomed the $4 million expansion of the WaterWise program, claiming it promised to deliver practical improvements in water consumption, with the association also having called for an increase to the funding available for the program in its Pre-Budget Submission.

www.mbav.com.au

 

 

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